How does Round Trailing work for Revenue distribution?

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monique Z-Support SME

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How does Round Trailing work for Revenue distribution?

I am using the revenue rule Daily Over Time. How does Round Trailing work for revenue distribution?



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monique Z-Support SME

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Z-Support SME
Posts: 227
Registered: ‎01-06-2016

Re: How does Round Trailing work for Revenue distribution?

Round Trailing only applies to the revenue rules:

Daily over time and Monthly Recognition over time

 

Rounding rules determine how to handle any remaining revenue amounts. The following options are available:

  • Round trailing: Calculate the remaining revenue amount. Starting on the last day of the recognition period and working back in time, add $0.01 per day until the remaining amount is consumed.

 

  • Round last: Calculate the remaining revenue amount.  Add the remaining amount to the last day of the recognition term.

Suppose you have revenue of $135.33 that is recognized daily over a 90 day period, where the daily recognized revenue amount is $1.50 after rounding:

  • Amount: $135.33
  • Recognition term: 1/1/2013 through 3/31/2013   (90 days)
  • Remaining amount: $0.33 = $135.33 - [90 days * ( $135.33 / 90 days), rounded]

 The following example shows how each rounding rule handles the remaining $0.33:

 

Round Trailing Rule Amount Explanation 
January Accounting Period $0.00 No remaining amount is available to add to this accounting period
February Accounting Period $0.02 $0.01 per day is added to the last two days of the accounting period
March Accounting Period $0.31 $0.01 per day is added to this accounting period, which is in this case is 31 days for the month of March.

 

Round Last Rule Amount Explanation
January Accounting Period $0.00 N/A
February Accounting Period $0.00 N/A
March Accounting Period $0.33 The whole remaining amount is added to the last day of the recognition term which falls in the Marching accounting period.


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